Published: 22/03/2022

3 Ways to Lower Your Credit Card Interest Rate

Credit Card Interest Rates

Here we suggest 3 ways to lower your credit card. You may be able to reduce how much it costs you.

It is generally best to avoid carrying a balance on your cards whenever possible because credit cards are known for their high interest rates. Whether you have an existing one you're looking to clear or you're opening a new card, you don't necessarily have to accept its high rate.

You may have some options for cutting the cost of using credit cards. These techniques may work for you.

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Ask your lender for a rate reduction

Perhaps the simplest way to cut the interest rate on your credit cards is to simply ask your card issuer! Call the customer service number on your credit card, to make this request. Explain why you want or need a lower rate and ask how they can help.

If you let them know you're thinking of switching to a different card company or doing a balance transfer card issuers often want to keep your business. They may consider dropping the rate on your current card. They also want you to keep paying your account on time. If you explain you're facing financial difficulty, dropping the interest rate to help may also be possible. If you’ve had the card for a long time, you may have good luck with this approach. Before you find someone to help you, you may need to call more than once. Sometimes the card issuer may only agree to a temporary rate reduction.

Refinance your credit card debt

You have another option that's worth considering if you can’t reduce the interest rate on your current credit cards by asking your lender for a break. You can apply for a personal loan and use the proceeds to pay off your card.

It may be possible to reduce borrowing costs, because personal loans often come with a lower interest rate. Your personal loan will have a repayment schedule, so once you refinance, you'll know exactly when your debt will be paid off and how much it will cost you over time.

Consider a balance transfer

Transferring the balance on your costly credit card to another one offering a better deal is a third solution to cut your interest.

Card issuers want to get your business and provide incentives for transferring your current balance from your existing card. This is usually a 0% introductory rate on balance transfers for a limited period of time, often  for 12 or 15 months if you transfer a balance.

Expect to pay a balance transfer fee to do this which is often a small percentage of the amount being transferred. Transferring you'll then enjoy months of 0% interest, so a balance transfer could still pay off.

Check out these three options to decide which makes the most sense for you so you can say goodbye to high credit card interest charges for good.

1Plus1 offer personal consolidation loans backed by a guarantor, subject to both the borrower and guarantor meeting our affordability and credit worthiness criteria.

If you think you may be interested in a 1Plus1 Loan, please give us a call on 0330 1200 313 and one of our friendly staff will be more than happy to discuss the process with you, or start your application here.

Last updated: 24/03/2022